Welcome!

News Feed Item

76 Percent of Kansas Parents Making Cutbacks but Savings for Children's Education Are Above Average - BMO Harris Bank Survey

LEAWOOD, KS -- (Marketwired) -- 02/27/14 --


  • Parents in Kansas spend an average of $823 per month on child-related expenses
  • Parents contributing to 529 Plan on average $290 each month
  • BMO Harris offers tools and advice for all life stages, from planning a baby to raising a family

A new study released today by BMO Harris Bank found Kansas parents with young children spend a monthly average of $823 on child-related costs, slightly above the national average of $795. The survey found that parents planning to have a child overestimate what they will spend on their first child, but their estimate of $1,508 per month, on average, is lower than the national average estimate of $2,143. Forty-five percent of Kansas respondents recognize the need to save. However, only one-tenth of future parents in Kansas have actually started to save for kids, the lowest of states surveyed and well below the national average of 21 percent.

Of those Kansas respondents who already have children, three-quarters (76 percent) have made cutbacks to cover the cost of raising them, including 25 percent who have gone into debt. Most (79 percent), however, say they have a budget in place.

"Typically, financial priorities get switched around once a child enters the picture; and it's not uncommon for spending habits to change. Once you make the decision to have a family, it's a good idea to set up a fund dedicated to those future costs," said Brad Smith, Kansas President, BMO Harris Bank.

The study, which surveyed parents expecting to have a child in the next five years or with children less than 10 years old, found that in Kansas:

  • Childcare was the greatest anticipated expense, and the estimates were close to the costs actually incurred of those future parents expecting to incur childcare expenses, they estimated the cost would be $473 per child annually, versus the $495 expected by those who currently pay for it (Nationally: $507 vs. $437).
  • Those soon-to-be parents planning to contribute to a 529 Plan also expected they would put away only $178 monthly. By contrast, current parents who do contribute actually set aside roughly $290 monthly (Nationally: $303 vs. $196).
  • Clothes and diapers cost half as much as future parents in Kansas expected. Future parents anticipate spending $157 monthly, while current parents say it costs them $76 per month (Nationally: $251 vs. $95).

"It is encouraging to see that expectant parents plan to save monthly for their child's education; those will be dollars well-spent," added Mr. Smith.

The results also showed what expected and new parents in Kansas consider their top financial concerns, compared to the national average:

---------------------------------------------------------------------------
          Financial Concern                 Kansas            National
---------------------------------------------------------------------------
Saving for their children's education        78%                87%
---------------------------------------------------------------------------
Healthcare costs                             89%                87%
---------------------------------------------------------------------------
The costs of raising children                83%                86%
---------------------------------------------------------------------------
The cost of living                           85%                84%
---------------------------------------------------------------------------
Having enough money to retire                82%                83%
---------------------------------------------------------------------------
The value of their investments               72%                71%
---------------------------------------------------------------------------
Job security                                 62%                67%
---------------------------------------------------------------------------
Making their mortgage payments               46%                51%
---------------------------------------------------------------------------

At a national level, the survey found:

  • Most parents (85 percent) report having to make cutbacks to pay for children.
  • More than a quarter (28 percent) have gone into debt.
  • 82 percent of new and expecting parents have a budget in place.

"The cost of raising a child is a major outlay for households, but current and would-be parents have to be careful to incorporate these actual and expected outlays in their family budgets. This often means cutting back on spending elsewhere and exercising caution when using credit," said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. "Households across America have made remarkable progress in repairing their balance sheets during the past few years. Across all households, mortgage and consumer credit peaked at nearly 125 percent of after-tax personal incomes during 2007 and it has since fallen under 99 percent, hovering around its lowest level in more than a decade."

For more information about planning for the next Life Stage, visit bmoharris.com/yourfinanciallife

Survey results cited in this release are from a Pollara survey with an online sample of 1,500 Americans (including 150 from Kansas) conducted between November 22nd and 29th, 2013. This includes 993 interviews with parents of children under 10 and 507 interviews with Americans who expect to have their first child in the next 5 years. The margin of error for a probability sample of this size is +/- 2.5%, 19 times out of 20.

About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank or credit approval. BMO Harris Bank® is a trade name used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $537 billion in assets (as of October 31, 2013).

For media inquiries, please contact:

Carey Allen
[email protected]
(480) 558-6383

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.